Employer of Record in Ghana

Solutions from Employer of Record Ghana (EOR) enable expanding a business to Ghana simple and hassle-free. Without the need to establish a separate legal corporation, businesses may employ extraordinarily qualified workers in Ghana thanks to our innovative HR platform. Taking care of payroll management, tax preparation, and other legal requirements, accelerates the process of hiring and onboarding a remote crew. Book a demo right away to find out more.

Overview of Ghana

• Population: 31,705,274 (2021, according to United Nations’ latest data)
• Currency: Ghanaian cedi (GHS)
• Capital city: Accra
• Languages spoken: English and Akan
• Gross Domestic Product: USD 66.98 billion in the year 2019; expected to reach USD 74.26 Billion by the year 2021.

Employment Landscape in Ghana

According to the Ghana Labor Act of 2003 (Act 651), businesses that have employees in Ghana for a period of six months or more are required to provide and have them sign a formal employment contract. All of the parties’ rights and duties must be clearly stated in the contract.

Entitlements	Explanation
Standard Working Hours	40 hours per week
Overtime Eligibility	Only if the project has set fees may a worker work overtime. For weekends and holidays, overtime pay is 200% of the hourly wage, and it is paid at a rate of 150% of the regular rate.
Paid Public Holidays	The public holidays in Ghana for 2021 are as follows. New Year’s Day Independence Day of Ghana Good Friday Easter Monday Labor Day Eid al-Fitr Africa Day Republic Day Eid al-Adha Founder’s Day Kwame Nkrumah Memorial Day Farmers’ Day Christmas Day Boxing Day
Holiday Pay	Employees are entitled to up to 15 days of paid annual leave, but they must use it all at once.
Medical Leave	Sick leave is not specifically addressed in the employment legislation. However, a doctor’s certification is required if an employee requests sick time. It does not count against the employee’s right to yearly leave.
Maternity Leave	For female employees, maternity leave lasts for 12 weeks and can be extended by an additional two weeks in the event of problems or multiple deliveries. The employee is entitled to 60 minutes per day of nursing time after she returns to work following maternity leave, up until the kid is one year old. Paternity leave is not yet offered in Ghana. Ghana is planning to impose the same requirement for up to five days.
Annual leave accrual entitlement	Employees in Ghana are entitled to 15 working days of annual leave if they have worked for the company for a full year.
Leave expiry	Employees are entitled to standard leave as specified in their employment contract or, in the absence of one, by the employer. If the worker doesn’t use it within 180 days of the annual leave for the relevant year, it must be forfeited. cycle.
Accrued Leave At Termination	The employee is eligible to receive the following: Payment for any work completed prior to termination Deferred compensation that is owed to them Any outstanding amounts owed for compensation or benefits.
Employee protection and anti-discrimination rights	Any discrimination against a potential or current employee based on their race, gender, creed, color, economic position, ethnicity, handicap, social connection, or religion shall be regarded as a violation of the law, according to the Ghana Labor Act, 2003 (Act 651) (page 33). Additionally, the company should treat all of its employees equally when it comes to promotions, training, and compensation.
Confidentiality of Personal Information	The Data Protection Act of 2012 protects people’s personal information and privacy. Companies are required to abide by particular rules and norms under this statute. The ensuing guidelines apply: Personal information about an employee may only be processed under Section 19 if it is pertinent or required. The employee’s consent must be obtained in advance before their data may be handled.

Contractors vs. Full-time Employees

Hiring Contractors

Contractors are independent professionals that operate on a project- or contract-basis in Ghana. They do not receive employer payroll benefits as ordinary workers do, and they are in charge of handling and paying their own taxes. Contractors frequently perform intermittent work for several clients or businesses.

Employers should take into account using contractors for projects that are seasonal or short-term, have minimal need for tight monitoring, or are unrelated to the company’s main operation. The decreased expenses involved with this arrangement are the main benefit of hiring contractors. Employers also have the freedom to use contractors as needed for particular jobs or projects.

Contractors manage their workload and deadlines as they see fit, giving employers little influence over their work because they operate independently.

Hiring Full-time Employees

Full-time workers in Ghana are those who are engaged on a full-time basis by an organisation and carry out its directives. Paychecks and employee perks are due to them.

Companies who intend to operate in Ghana for the long term and need a staff to support their business model may consider hiring full-time personnel. Employers frequently take into account full-time jobs for tasks that are essential to the expansion and profitability of the business.

The fact that full-time employees are more likely to be loyal, devoted to the company’s mission, and less inclined to leave for a more lucrative position elsewhere is one of the key benefits of hiring them. Within the company’s personnel circle, they can also exchange expertise and trade secrets while protecting them.

However, employing full-time workers has several drawbacks. Employment costs go up because employers are required to offer employment benefits. In addition, whether the company is profitable or not, companies are required to provide salaries to full-time workers.

Recruitment in Ghana

Employers may think about employing a third-party company to perform background checks on prospective employees when recruiting workers in Ghana, provided that the inquiries abide by local regulations and do not jeopardise the candidate’s privacy.

Shortlisting possible candidates and gathering their information from pertinent public records or independent employment networks like LinkedIn often marks the start of the recruiting process. But before collecting their data, the applicant’s consent is essential.

According to Ghana’s Data Protection Act of 2012, all medical information, criminal history information, and other personal data are kept private. Therefore, with the applicant’s permission or if permitted by local legislation, employers may retrieve this information.

Businesses may utilise job search engines like monster , craigslist, linkedin, and Ghanaian employment portals like ghanajob and joblistghana  to find new personnel. However, because of the enormous audience they draw, these platforms could have certain drawbacks including spam and repetition.

Businesses in Ghana may use our EOR services to hire and onboard contract and full-time personnel. Our services are intended to save costs and make addressing responsibilities associated with employment in Ghana easier. Businesses may concentrate on their core operations while we take care of their hiring needs thanks to our secure services. To discover more about our Ghana EOR solution, get in touch with us.

Probation & Termination

Probation

The statute makes no mention of the probationary term. But it must be predetermined by a collective bargaining agreement between the employer and the employee, and it must be reasonable. It is advised to incorporate the mutually agreed-upon probationary term in a formal employment contract.

Termination

Notice for termination of employment

In Ghana, either the employer or the employee may end the contract at any time for good cause. Either party should get a written termination copy. If the employment contract has a “at-will” clause, the employee may be compensated in lieu of notice. The provision gives an employer the power to dismiss an employee without giving them any advance notice at the conclusion of any working day. The following shall apply in all other circumstances. Duration of Employment Notice Period Equal to or more than three years One month Less than three years Two weeks Weekly contract Seven days Contract determinable at will by either party At the end of the working day (no notice required)

EOR Solution in Ghana

A quick way for businesses to start and expand their presence in Ghana is to use the Employers of Record (EOR) model. With the help of our EOR services, international companies may quickly and simply find and hire the qualified personnel they need to satisfy their organisation’s particular requirements. Our simplified onboarding procedure guarantees a flawless integration of new staff, saving your company a considerable amount of time and money. Employment contracts, payroll and tax processing, statutory benefits, and general HR administration are all included in our end-to-end solutions. Our platform is a full-service employment solution that complies fully with all applicable laws and includes automated processes, digital signatures, payroll processing, contractor payments, and contractor payouts.

General Employer of Record Service Terms

Terms	Explanation
Taxes that apply to invoices	Ghanaian entity: 5.5% of the wages Foreign company: 3% of the wages
Minimum duration of service	Temporary employee – One-month Permanent employee – 2 months
Currency Accepted	Ghanaian Cedi (GHS)
Required Details & Documents	The following documents are required for Ghana citizens. Copy of passport Personal information Copy of the National Registration Identity Card (NRIC) (for permanent residents) Bank details Job description The following documents are required for expatriates. Job description Personal information Copy of Contract of employment Technical qualifications Educational qualifications Curriculum vitae (CV) Copy of ID Copy of passport Photographs Bank details Medical exam results Police verification

 Outsourcing Employment through an Employer of Record

Our Ghana EOR solutions can assist you in determining the best course of action for expanding your business in Ghana, regardless of whether your firm needs workers to fulfil strategic expansion objectives or you need qualified individuals for certain tasks. To start your expansion project, get in touch with us right now.

Types of Visas in Ghana

Visa Category	Explanation
Single-entry visas	This type of visa entitles the bearer to a single entry and a minimum three-month stay at the Ghanaian border.
Express visas	This visa allows the holder to enter Ghana more than once and is good for at least six months.
Criteria for visa application	Make sure you satisfy the requirements depending on your intended use of the trip before applying for a visa to Ghana. Personnel of foreign organisations, guests, tourists, diplomats, business professionals, and students may apply for visas. An application for a visa typically takes five business days to process. However, the processing time for an expedited visa might be as short as 48 hours. Please be aware that depending on the kind of visa and the volume of applications being handled, the processing time may vary.
Documents required for a Ghanaian visa	To apply for a Ghanaian visa, you need to provide the following documents: A completed visa application form that is signed and dated Two recent passport-sized photographs of yourself Proof of your residential and business addresses Your contact number Details of your occupation and job application Your proposed travel date An income statement Names and addresses of references in Ghana For children under 18, a consent letter from a legal guardian or parent is required. When applying for a Ghanaian visa, it’s essential to have all the necessary documents in place. These include a filled-out and signed visa application form, two passport-sized photos, proof of your residential and business addresses, your contact number, your occupation and job details, your proposed travel date, an income statement, and contact details of references in Ghana. Additionally, for children under 18, a consent letter from a legal guardian or parent is mandatory.

Work Permits

Can we Sponsor Work Permit in Ghana?	For your growth into Ghana, we can sponsor work visas.
Processing time	The needed processing time is four to six weeks.
Work Permit Process	The actions listed below must be taken by candidates in order to get a work permit in Ghana: To get the application for a work permit, go to the Ghana Immigration Service office. Accurately fill out and sign the work permit application. Send the Ghana Immigration Service the completed application form and any necessary documentation. Immigration authorities examine the application and validate the data given. The applicant receives the work permit when the application is approved.
Work Permit validity	A work permit is valid for one year.
Where is the Application Processed?	Ghana Immigration Service
Work Permit Restrictions	Each work permit application is thoroughly examined by the Ghana Immigration Service to make sure that the supporting documentation is genuine and complete. Applications that are unworthy or that contain insufficient information from the applicant may be rejected. Before approving an application, more details from the applicant could occasionally be needed. Before filing a work permit application, it is essential to consult a legal professional since, in some cases, the Ghana Immigration Service may need more information. To assess a candidate’s eligibility for a work permit, their job history is examined.
What’s the cost of a business visa?	A business visa with a validity of more than a year and the ability for the visa holder to make numerous entries for up to five years costs USD $250.
Duration of business visa processing	Processing time for a business visa is 16 business days.
Can spouses work on dependent visas?	Spouses who hold dependent visas are eligible for benefits under the Dependent Residence Permit. They are not permitted to utilise it to further any endeavour, enterprise, or line of work. To work in Ghana, they will have to apply for different permission.
Termination of work permit	In Ghana, a work visa must be terminated with a seven-day notice period.
Documents required for a work permit	Applicants must make sure they have all the required paperwork and documentation before applying for a Ghana work permit. These consist of a copy of the employer’s passport biodata page, the employee’s police verification report, their medical report, their educational and professional credentials, passport-size photos, their appointment letter (if one has been issued), their CV, their employment contract, their completed work permit application form, and their certificate of registration, a certificate for the start of their business, and their certificate of incorporation. In order to avoid any delays or rejections in the application process, it is crucial to make sure that all necessary papers are presented with the application.

Payroll & Taxes in Ghana

The following acts are applicable in Ghana to manage payroll and taxes in the region

• Income Tax (Amendment) Act 2021
• Ghana Revenue Authority Act, 2009 – Act 791
• Income Tax Act, 2015 – Act 896
• TIN Act, 2002 – Act 632
• VAT Amendment Act 954
• Value Added Tax Act, 2013 – Act 870
• Communications Service Tax Act, 2008 -Act 754
• Internal Revenue ACT (2012 Amended Version)
• Ghana Education Trust Fund Act, 2000 – Act 581
• Free Zones Act 1995-Act-504
• Ghana Infrastructure Investment Fundamental Act 2021
• Stamp Duty Act 689
• Financial Sector Recovery Levy Act 2021
• Revenue Administration (Amendment) Act,2020 Act 1029

Things You Must Know to Set Up Payroll in Ghana

The payroll in Ghana is governed by the Labor Act, 2003. Every firm intending to establish a presence in Ghana should be fully informed about payroll management options. They can make better judgments on payroll-related issues if they have the appropriate information.

There are two types of payroll solutions in Ghana: in-house payroll systems and payroll outsourcing systems.

Explanation	Outsourcing Payroll System	In-House Payroll System
Overview	In this instance, the business contracts with a payroll team (a third party) to handle all the computations and data input connected to payments.	Here, the company’s internal team of professionals who have access to the necessary technological tools for operating the department oversees the department’s payroll setup..
Features	Boost revenue-generating opportunities Simplified payroll setup and administration Availability of supplementary services	Cost-efficient More Privacy Complete control over the payroll process
Processes involved	Payroll processing Remuneration management WPS payment Travel expenses management Reimbursement management Bonuses, overtime, and incentive management	Gathering employee’s information  Maintaining records Calculating overtime and wages of employees Managing deductions for leaves and benefit contributions Depositing and withholding taxes Printing and distributing pay stubs or checks
Suitability	Ideal for businesses that require a professional to handle the complexity of payroll setting.	Ideal for enterprises who don’t feel comfortable exchanging information with a third party and want full control and access to the process.
Third-party involvement	Yes	No
In-house payroll management team required	No	Yes

Taxes in Ghana

Employer Taxation

Tax	Explanation
Financial year-end date	April 1, each year
Tax documents	DT 101 Company Income Tax Return DT 103 Personal Income Tax Return
Corporate tax	The corporate income tax rate is 25%.
Withholding tax (for non-residents)	Depending on their tax liabilities, non-residents’ withholding tax rates might range from 3% to 7.5%.
Payroll tax	13.00%
Social Security and statutory contributions	13.00%
Medical insurance	According to Labor Act 651, companies are not required to offer their workers health or medical insurance.

Employee Taxation

Tax	Explanation
Income tax rates	Gross Income in GHS Tax (%) 0–3,828 0% 3,828–5,028 5% 5,028–6,468 10% 6,468–42,468 17.5% 42,468–240,000 25% Above GHS 240,000 30% These tax rates apply to residents only. Non-residents pay taxes at the flat rate of 25%.
Sales Tax	The sales tax rate in Ghana is 13.50%.
Payroll tax	5.5%
Social security and statutory contributions	5.50%
Tax returns	Yes, income tax returns must be filed.

Bonuses

About 15% of the base salary is made up of bonuses, which are taxed at a rate of 5%.

For firms looking to establish themselves in a new nation, incorporating a subsidiary is an essential step since it gives them legal recognition and guarantees that they are abiding by local rules. Location, expenses, and legal restrictions are essential considerations when deciding where to locate a Ghanaian subsidiary. It is advised to get advice from a specialist who can help you identify the best options for your company.

Public limited companies, limited liability companies (LLCs), free zone firms, and branch offices are the four basic types of entities that can be founded in Ghana. LLCs are a well-liked choice that gives firms the ability to conduct business as though it were a resident company in Ghana.

Businesses must take a number of actions in order to create an LLC in Ghana. This entails registering their place of business and mailing address, approving the number of shares, selecting a company secretary, and submitting all necessary paperwork to the appropriate authorities. It’s also crucial to obtain the certificate of incorporation and business start-up.

Businesses may speed the subsidiary incorporation process while assuring compliance with local, state, and federal laws by working with us. Our services are created to make the incorporation process simpler and lower the risks involved, saving our clients time and money.